What Oil and Gas Companies Outsource: Back-Office, Admin and IT Support
Oil and Gas Companies outsource accounting, administrative work, IT support and other tasks that don't require employees to be on-site. For businesses managing multiple projects, vendors, and field operations, these responsibilities can take considerable time away from core activities.
Outsourcing can help reduce that workload, but not every function is suitable for an external team. Here's what companies commonly outsource, how much it costs, and when it's worth considering.
Table of Contents
- What Is Oil and Gas Outsourcing?
- What Services Do Oil and Gas Companies Outsource?
- How Does Remote Staffing Work in Oil and Gas?
- What Are the Benefits of Outsourcing for Oil and Gas Companies?
- How Much Does Oil and Gas Remote Staffing Cost?
- What Are the Risks of Outsourcing Oil and Gas Operations?
- When Is Outsourcing Worth It and When Is It Not?
- Conclusion
- Frequently Asked Questions
What Is Oil and Gas Outsourcing?
Oil and gas outsourcing involves hiring external professionals or service providers to manage business functions such as accounting, payroll, administration and IT support.
For example, an oilfield operator might outsource invoice processing and employee records while keeping drilling, production and field safety decisions in-house.
The purpose is to reduce routine workloads, access qualified professionals and manage staffing costs without compromising operational control.
What Services Do Oil and Gas Companies Outsource?
Most outsourced responsibilities fall into three categories: back-office operations, administrative support and IT services.
1. Back-Office and Accounting Services
Managing finances across multiple wells, contractors, and projects involves considerable paperwork. Oil and gas back-office outsourcing helps companies manage these routine responsibilities without overloading their internal teams.
Commonly outsourced tasks include:
- Accounts payable: Processing invoices, tracking payments and reconciling expenses.
- Payroll: Managing timesheets and preparing employee and contractor payments.
- Revenue accounting: Tracking production revenue and payments to working interest owners.
- Financial reporting: Maintaining records and preparing financial statements.
Some companies also outsource specialized work, such as joint interest billing, which involves dividing shared operating expenses among participating owners. These tasks require professionals familiar with oil and gas accounting practices.
2. Administrative and Documentation Support
Oil and gas businesses handle large volumes of contracts, project records, supplier information, and operational reports.
Administrative support can take routine documentation and coordination tasks off internal teams' desks.
This may include:
- Maintaining contractor and supplier records
- Scheduling meetings and coordinating project updates
- Organizing contracts through document control services
- Supporting land and lease administration
- Preparing reports and updating company databases
Remote professionals can manage much of this paperwork, while internal managers retain responsibility for approvals and important business decisions.
3. IT Support and Technical Services
Field offices, headquarters and remote employees often depend on shared software, secure networks and reliable technical assistance.
IT support for oil and gas companies may include:
- Help desk and employee troubleshooting
- Software updates and user account management
- Cloud administration and data backups
- Network monitoring and cybersecurity support
These responsibilities can be handled remotely when proper access controls are in place.
However, production-critical systems and industrial equipment require specialized expertise and stricter security arrangements.
How Does Remote Staffing Work in Oil and Gas?
Oil and gas remote staffing allows businesses to hire dedicated professionals who work remotely as part of their existing teams.
For example, an accounting assistant might process invoices, update payment records and prepare reports while reporting directly to the company's finance manager.
The staffing provider typically helps source, screen and onboard suitable candidates.
Remote staffing differs from traditional BPO. With remote staffing, the client usually manages the employee's daily work. With BPO, an external provider takes responsibility for delivering an agreed business process.
Both arrangements can be useful, depending on how much control and management the company wants to retain.
What Are the Benefits of Outsourcing for Oil and Gas Companies?
1. Reduced Administrative Workload
Finance and operations teams often spend valuable hours processing invoices, updating spreadsheets and following up on documentation.
Assigning these responsibilities to remote professionals can free internal staff to concentrate on financial reviews, project coordination and other higher-priority work.
2. More Control Over Staffing Costs
Outsourcing may reduce recruitment expenses, office requirements and other costs associated with hiring employees on-site.
Businesses can also add support as workloads grow instead of immediately expanding their permanent teams.
Actual savings depend on the arrangement and the level of supervision required.
3. Access to Skills Without Local Hiring Limitations
Finding experienced accounting, administrative or IT professionals isn't always easy, particularly for companies operating in remote locations.
Outsourcing gives businesses a wider hiring pool, including professionals with relevant industry experience.
For smaller operators, this can be particularly useful when a full internal department isn't financially practical.
How Much Does Oil and Gas Remote Staffing Cost?
Remote staffing costs depend on the employee's experience, location and responsibilities. Providers may charge hourly rates, monthly fees or fixed prices for specific services.
Before choosing a provider, check whether the cost includes recruitment, onboarding, software, and ongoing support.
Focus on the total cost, not just the staffing fee. Lower rates may not save money if the work requires frequent corrections or additional supervision.
What Are the Risks of Outsourcing Oil and Gas Operations?
Outsourcing can create difficulties when companies delegate responsibilities without clear expectations or proper oversight.
The most common concerns include:
- Data security: Financial and operational records need restricted access and secure handling.
- Industry knowledge: General accounting experience may not be enough for specialized oil and gas reporting.
- Communication: Different time zones and unclear instructions can delay work.
- Accuracy and compliance: Billing errors, incomplete records and missed deadlines can create financial or regulatory problems.
Before choosing a provider, ask about industry experience, data protection, reporting procedures and who will review completed work.
Companies should also retain control over payment approvals, sensitive system access and regulatory decisions.
When Is Outsourcing Worth It and When Is It Not?
Outsourcing makes sense when administrative workloads increase, hiring becomes difficult or internal teams need additional support.
However, tasks requiring on-site presence, direct operational control or highly specialized expertise may be better managed in-house.
The best approach is to start with one function, assess the results and expand only when outsourcing proves beneficial.
Conclusion
Accounting, administrative work and IT support are among the functions oil and gas businesses can manage through outsourcing. The right arrangement depends on the workload, required expertise and how much control a company needs over its daily operations.
Dotcomsourcing helps Oil and Gas Companies find dedicated remote professionals for business support roles, including finance, administration and IT-related functions. Its staffing process covers candidate screening, onboarding and ongoing support.
Need additional support without expanding your on-site team? Contact Dotcomsourcing to discuss your staffing needs and explore suitable remote roles.
Frequently Asked Questions
Q1: What do oil and gas companies outsource most often?
Common outsourced functions include accounting, payroll, administrative support, document management and IT services.
Q2: Can small oil and gas companies benefit from outsourcing?
Yes, smaller operators can outsource recurring tasks instead of hiring separate full-time employees for every function.
Q3: Is remote staffing cheaper than hiring in-house?
It can be, depending on employee location, experience, provider fees and the total cost of hiring internally.
Q4: Can oil and gas accounting be outsourced safely?
Yes, provided qualified professionals follow proper security procedures, accounting controls and approval requirements.
Q5: What should oil and gas companies check before outsourcing?
Review the provider's industry experience, security practices, pricing, reporting process and employee qualifications.